Richard Branson-backed investment platform Lightyear has launched a new account for the ‘solopreneur’ and freelancer market.
The app combines multi-currency accounts with access to global markets so customers can invest freely without hidden fees.
Last year Lightyear raised £21.1m in a Series A funding round led by Silicon Valley’s Lightspeed Venture Partners.
Virgin Group, founded by Richard Branson, joined Lightspeed in the investment round.
Lightyear was founded by ex-Wise duo Martin Sokk and Mihkel Aamer to allow investors to access global stocks without the traditional hit of transaction, custody and foreign exchange fees.
This week Lightyear announced the launch of small business investment accounts for freelancers and sole directors in the UK.
£21.1m Silicon Valley funding as Lightyear launches in Europe
This launch comes alongside a brand new partnership with BlackRock to bring access to Money Market Funds for UK businesses without the high fees or minimum investments.
New business accounts mean freelancers can invest and earn interest on company money.
With another interest rate hike on the horizon, Lightyear’s launch of business accounts helps freelancers and sole director companies make the most of their company funds, ensuring that excess corporate cash isn’t eaten up by inflation while sitting in bank current accounts.
Whilst sole directors are the largest and most underserved segment of the market, access to investment accounts isn’t just an isolated problem for them; the broader business investment account market in the UK is in need of a shake up.
Lightyear’s partnership with BlackRock, the world’s largest investment company will give business and retail investors access to MMFs without the traditional £1m minimum investment criteria.
In addition to giving 4.5 per cent interest on uninvested GBP, the platform now has a strong product for UK investors to make the most of global high interest rates with both cash and investments.
Martin Sokk, co-founder and CEO at Lightyear, said: “The retail investment market has come a long way in the last 10 years or so. Don’t get me wrong – it still has problems (which Lightyear is trying to solve) but the business market is miles behind.
“In fact, for the UK’s ‘solopreneurs’, it basically doesn’t exist. So, I’m particularly excited about the launch of our business investment accounts and MMFs; we’re helping businesses actually benefit from the increasing interest rates – something which they just can’t do with banks.
“We’re first focusing on the largest, but most underserved part of the market – sole owner businesses – then we’ll open this out to multi-user and larger businesses in the next few months. So watch this space!”
Taavet Hinrikus, co-founder of Wise and startup investor added: “Businesses in the UK need to make sure their cash is not draining its value against inflation, but they currently don’t have enough options to do this.
“With today’s high interest rate climate, Lightyear’s launch of both business investment accounts and MMFs is a timely step towards helping entrepreneurs put their cash to work.
“Their new business accounts enable freelancers to earn interest and invest their otherwise stagnant cash, and their BlackRock MMFs partnership introduces these entrepreneurs to a whole new area of investing, previously reserved for larger corporates.
“With millions of businesses in the UK who can benefit from these launches, it’s a very exciting move for the sector.”